Gas Price Hike Likely Amid Supply Shortages, Senate Panel Told
Key Points:
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Possible Gas Price Increase: Sui Southern Gas Company (SSGC) officials suggested raising domestic gas prices to ensure uninterrupted supply and end load-shedding.
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Heavy Reliance on LNG Imports: Sui Northern Gas Pipelines Limited (SNGPL) MD stated that only 45% of Pakistan’s gas demand is met through local production, while 55% depends on costly LNG imports.
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Ramadan Complaints Surge: Over 25,000 gas-related complaints were filed during Ramadan, with 132,376 low-pressure complaints reported last year—131,000+ resolved.
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Lahore Supply Restoration: SNGPL is working to restore gas supply in Lahore, with personal attention promised to complaints raised by Senator Kamil Ali Agha.
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Petroleum Sector Neglect: Petroleum Minister Ali Pervaiz Malik admitted the sector got less focus due to priority on power issues. He confirmed:
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Declining local gas production is forcing LNG use even for domestic stoves.
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Oil refinery policies remain unimplemented, but minerals sector is attracting foreign investment.
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Reko Diq Update: Production expected by 2028, with a 37-year lifespan and $70 billion projected cash flow.
Pakistan’s growing gas crisis may lead to higher consumer prices as authorities struggle with import dependency and supply shortages. While efforts are being made to address complaints, structural issues—like declining local reserves and delayed refinery policies—remain unresolved. The Reko Diq project offers long-term economic hope, but short-term energy challenges persist, with households and industries bearing the brunt of rising costs and unreliable supply.
